Urgent

Hai All

Can you help me..I have shown30000 under head FA in B Sheet agst purchase of Computer in during charged two years and have not charged any Depreciation. But during this year i want to claim dep. in that case will i charge dep @ 60% on30000 this year or give retrospective effect

 

Pls explian in detail alomng with exact amount to be claimed as dep this year.

Replies (9)
You are required to charge depreciation only for that year, not from retrospective effect on the ground that earlier i am using that assets for personal use, so i was not charging dep. but now the same is being use in business. so there is no problem to charge dep. on cost only of that year Regards

According to me, if you havent charged depreciation in past years although you were supposed to, you can assume the asset being used for personal use by the properietor and charge the dep. from the current year but you should not charge dep. on the original value of Rs. 30,000 as the value of the computer has gone down whether or not you have claimed depreciation in your return...

Its just a fact of few hundred rupees so doesnt matter much but it is advised to charge dep. on the value it should have been had you have charged the depreciation correctly.

you have to claim depreciation 60% on 30000 this year as wdv is not reduced in earlier years, 

DEPRECIATION IS COMPULSORY, U HAVE TO CHARGE IT EVERY YEAR, BOTH FOR COMPANY ACT PURPOSES AND INCOME TAX PURPOSE.

IF YOU HAVE NOT CLAIMED DEPR. IN EARLIER YEARS THEN YOU CANT ACCUMULATE IT AND CHARGE LUMPSUM. IT IS CHARGE ON ANNUAL PROFIT.

IN THE CUREENT YEAR WHEN U CHARGE DEPR. IT IS TO BE ASSUMED THAT DEPR. IS CHARGED IN THE LAST YEAR AND THE WDV OF THE ASSET IS REDUCED ACCORDINGLY. NOW ON THAT DEPRECIATED VALUE CHARGE DEPR. FOR THE CURRENT YEAR.

YOU CAN REVISE YOUR RETURN ON VALID CAUSES.

Originally posted by : Maheshkumar Sharma

DEPRECIATION IS COMPULSORY, U HAVE TO CHARGE IT EVERY YEAR, BOTH FOR COMPANY ACT PURPOSES AND INCOME TAX PURPOSE.

IF YOU HAVE NOT CLAIMED DEPR. IN EARLIER YEARS THEN YOU CANT ACCUMULATE IT AND CHARGE LUMPSUM. IT IS CHARGE ON ANNUAL PROFIT.

IN THE CUREENT YEAR WHEN U CHARGE DEPR. IT IS TO BE ASSUMED THAT DEPR. IS CHARGED IN THE LAST YEAR AND THE WDV OF THE ASSET IS REDUCED ACCORDINGLY. NOW ON THAT DEPRECIATED VALUE CHARGE DEPR. FOR THE CURRENT YEAR.

YOU CAN REVISE YOUR RETURN ON VALID CAUSES.

Agreed with mahesh sir:-, U have to reduce the cost of the asset assuming it has been used for the past two years and charge depreciation on the diminished value....

Yes I agree with mahesh sir...

to save the situation ........................u can produce that " put in use " in current year. 

agree with mahesh sir,,

As per me you should first prepare balance sheet of last year & make dep entry on that

& whichever amount you get that you c/f to this year & charges 60% dep on that wdv.

you only get  this year dep not previous year dep.

why i told this to preapre first last year becoz you get the actull amount of dep as well as your cap.becoz simuntansuly you have to give second effect in that year so your cap is reduced. 

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